We all make mistakes in our lives. We all make mistakes with our finances. The important thing about making mistakes is to learn from them. We should try not to repeat our mistakes. When we do make mistakes and we learn the lessons they teach, we should try to find a way to pass the lessons we’ve learned on to our loved ones as our financial legacy.
The Important Things to Remember
1. It is probably best to learn from the financial mistakes of others, and remember to learn from our own mistakes.
2. Finding a good way to share the things we have learned from these errors can help others avoid them and avoid some of the hard knocks that have taught us the lessons.
A big part of our journey in life is learning from our own mistakes. Another part of our journey and moving forward is learning from the mistakes of others. It is always easier to learn from others’ mistakes and less painful to learn from others’ mistakes than to learn from our own. Eleanor Roosevelt said, “Learn from the mistakes of others. You cannot live long enough to make them all yourself.”
We all make mistakes. Even the savviest of investors make mistakes and have those Monday morning quarterback moments. Learning from other peoples’ mistakes, again, helps us avoid the pain of making those mistakes ourselves.
One of the most very basic tenants of long term investing is learning our lessons well. For our loved ones, we should try to identify our own financial “boo-boo’s” and develop a way to pass that wisdom along.
Things To Consider
Over the years you have gained a substantial amount of wisdom and important life and financial lessons. Passing that wisdom on to your loved ones is really part of your financial and family legacy. In my opinion, it is important to be candid about your mistakes. Share the regrets that you have about your financial “boo-boo’s.” Doing this can give your loved ones a picture of where you were and where you have come and help your loved ones see a path that moves forward and a way to move them through that path in a less painful way.
Think About These Action Steps
1. Identify the most important lessons you have learned relating to money. Make a list of the lessons you learned. Create your own rules or principles and practices regarding money. It does not have to be formal or any fancy prose – just start your list.
2. Think about the items on your list. What impact have these items had on you? What financial loss, anxiety, strife and confusion have these items had in your life?
3. What is the most important thing on the list and what is the least important thing on the list? Place those items in ascending order from most important to least important.
4. Think about your list. Think about the lessons you have learned and consider ways to share your lessons with the ones you love and share them.
5. One way to do that sharing is to keep a copy of your life’s financial lessons list with your estate plan. Your loved ones will know you have been planning to offer them guidance wisdom. They may not want to listen to you now but they will always have your list of lessons.